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Alexandria Real Estate Equities — Top covered call setups ranked by yield and downside protection
Alexandria Real Estate Equities (ARE) operates in the Real Estate sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $48 strike with 44 days to expiration. IV Rank 91% is 57pp above the Real Estate sector median of 34%. This setup offers higher income potential, but caps upside at the strike. See Wheel Strategy for the full CSP-to-CC cycle.
Strike Placement
25.1% ann.Ranked #1 of 5 contracts by CC Score — balancing call yield, downside protection, and liquidity.
This is ★ Top Ranked of 5 contracts across 2 expirations. ↓ Find it below
CC Score = Income (22%) + Safety (18%) + Liquidity (18%) + Quality (14%) + Event (12%) + IV (8%) + Execution (8%)Annualized return, delta, bid-ask spread, open interest, earnings proximity, IV rank, DTE
VolRadar proprietary composite score using ORATS chain data
CC Score optimizes for income generation, not total return. Covered calls cap upside — stocks that rally strongly will underperform a buy-and-hold approach. Past CC returns do not predict future yields.
Every covered call strike sorted by CC Score. Higher score = better risk-adjusted income potential.
★ = Highest risk-adjusted CC Score across all expirations and strikes.
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $45 | $0.97 | 51.7% | 67 |
| $48 | $0.35 | 18.5% | 59 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $48★ TOP⚠️ Spans earnings | $1.30 | 25.1% | 70 |
| $53⚠️ Spans earnings | $0.35 | 6.7% | 59 |
| $50⚠️ Spans earnings | $0.68 | 13.0% | 59 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Alexandria Real Estate Equities currently offers a covered call at the $48 strike with 25.1% annualized return over 44 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 10.3% distance to strike provides cushion against early assignment. Verify bid-ask spreads before entering — wider spreads can reduce the practical value of this setup.
Alexandria Real Estate Equities's IV Rank sits at 91%, placing implied volatility above its 12-month norm. For covered call sellers, this means richer premiums per contract — the same strike and DTE commands more income when IV is expanded. This is one of the most favorable conditions for initiating or rolling covered calls.
The bid-ask spread is 7.7% on the top-ranked strike with open interest of 27. Wider spreads increase slippage — the difference between the theoretical mid-price and your actual fill. Use limit orders at or near the mid price, avoid market orders, and consider whether the spread erodes a meaningful portion of the premium collected. If fills are consistently poor, look at more liquid expirations or strikes closer to the money.
The top-ranked covered call for Alexandria Real Estate Equities is the $48 strike expiring 2026-05-15 (44 DTE), offering 25.1% annualized return with a delta of 0.30. It earns a CC Score of 70 out of 100. Data is updated daily after market close.
For Alexandria Real Estate Equities, delta 0.20–0.30 is a common range for covered calls. This gives 70–80% probability of the option expiring worthless while collecting meaningful premium. Lower delta (0.15–0.20) is more conservative, while 0.30–0.40 generates more income but has higher assignment probability.
The CC Score (0–100) ranks covered call opportunities across 7 dimensions: Income potential (22%), Safety (18%), Liquidity (18%), Underlying Quality (14%), Event Safety (12%), IV Opportunity (8%), and Execution Quality (8%). Higher scores mean better risk-adjusted opportunities. Sort by CC Score to find the best strike and expiration combo for Alexandria Real Estate Equities.
Weekly covered calls (7–14 DTE) offer faster theta decay and more flexibility but require active management. Monthly covered calls (30–45 DTE) balance time premium with less frequent rolling. For Alexandria Real Estate Equities, current elevated IV makes both viable — weeklies capture the rich premium faster. The CC Score ranks both DTE ranges so you can compare directly.
The primary risk is capped upside: if Alexandria Real Estate Equities rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $48 strike (10.3% OTM), any rally beyond that level means you sell shares below market price. To contextualize: covered calls are best suited for sideways-to-mildly-bullish outlooks. If you expect a significant move higher, consider waiting to sell the call or using a wider strike. The CC Score penalizes strikes with elevated event risk to help you avoid the worst setups.
Alexandria Real Estate Equities currently has an IV Rank of 91%. IV is elevated, meaning option premiums are richer than usual — a favorable environment for selling covered calls. Higher IV translates directly to more income per contract for the same strike distance.
The bid-ask spread on the top strike is 7.7%, which can reduce practical returns. Wide spreads mean you give up a portion of the premium to slippage on entry and exit. Use limit orders — start near the natural price and walk toward mid. If the spread exceeds 10-15% of the premium collected, the execution cost may outweigh the income.
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